As Singapore banks only mark up very little from their cost of funds, this makes credit available at a fairly cheap rate and as a result made property prices inflate.
Singapore residential home loans and Singapore property loans are the most competitive . These are the types of loans with the least margins.
Why do banks bother with residential home loans
Residential loans are secured loans with a large loan quantum. Banks need home loans to lend out large sums of money. These belong to the tranche of funds which are large volume, low margins.
Why do banks use mortgage consultants?
Banks do not really like home loan consultants that much as a mortgage consultant works for the client’s interest. Banks prefer to work with property agents which has less concerns for the clients.
Over the years, the banks have also had rounds of cost cutting and retrenchments. People are gradually replaced by machines. Helplines are no longer manned by real people, instead you will go through endless hours of wait while listening to, “Your call is important to us, please hold on, our consultants will attend to your call soon.” And worst of all, “Please press * to hang up or call us back between 9 to 5pm.”
Similarly, the number of bankers that attend to your bank loans are also reduced. There are probably only tens of bankers for the entire Singapore population per bank. Service levels consequently dropped as bankers are overworked and short fused. And Singapore bankers will often switch bank or get burnt out. It is really hard to have good service levels from bankers and banks as there is simply not enough pair of hands.
Many banks have also scaled back advertisingas well. As demands for home loans are inconsistent, the bank cannot hire a bunch of bankers, train them and fire them the next year when the demand has fallen.
In order to cope with the uncertain demand, banks have outsourced the front end banking. They pay Singapore mortgage consultants like us a fee for handling the advice, processing and follow up of the home loans. This way, they minimize the issue of a hire and fire culture at the banks, not that the banks cared, at the end of the day, it’s about profitability.
Initially banks wanted the consultants to market only their home loans. However www.propertyBUYER.com.sg mortgage consultants like us have signed up with many banks and pick up the best features and packages from each bank. Property Buyer mortgage consultants at loans@propertybuyer.com.sg or sms us at +65-9782-8606 we will pick out the best few packages and highlight the pros and cons of each package. The clients will then pick from them.
Over time, banks will get some deals, but commensurate with the attractiveness of their offer and their fit to our client’s needs. We also take the client’s feedback to the banks, sometimes the banks seem to listen.
Moreover, we will not push any particular package to any of our clients, rather we will first assess the client’s needs and narrow down the search for the client’s own selection.
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